Module II· Football Field & SensitivitiesAdvanced
Question
How do you defend the Football Field when an MD asks 'why this range and not wider/narrower'?
Answer
Structured defense:
- 'The $900–1,050m range is based on a 3-method overlap — DCF, trading comps, precedents.'
- 'Lower bound $900m: 25th-percentile trading multiple, conservative DCF scenario.'
- 'Upper bound $1,050m: 75th-percentile trading multiple, mid-range precedent pricing.'
- 'Strategic premium path up to $1,250m: top-quartile precedents.'
- 'LBO floor $800m: a realistic sponsor valuation with a 22% IRR target.'
Deep diveShow more details
Pitch tip
To 'why not wider' → 'Wider would include outlier-driven values not reflective of base-case'. To 'why not narrower' → 'Narrower would understate genuine valuation uncertainty across methodologies'. A top-quartile answer.